Experts began to raise forecasts for Apple. Highest – $220 per share

Experts began to raise forecasts for Apple. Highest – $220 per share


The iPhone maker reported record revenue and profits, despite supply chain problems and chip shortages. After that, analysts began to raise stock targets. Recommendation – "buy"

Apple's phenomenal numbers impressed investors, despite the difficulties with supplies and chips

The most expensive company in the world - Apple - published reports for the fourth quarter of 2021 (the first fiscal quarter of 2022). Revenue for the three months to December 25, 2021 increased by 11%, reaching a record level of $ 123.9 billion Net income was $ 2.1 per share against $ 1.68 in the same period a year earlier. Both figures exceeded analysts' expectations - $ 118.49 billion and $ 1.89, respectively - and the company's results were not affected by supply disruptions and chip shortages.

Revenue from the sale of the iPhone amounted to $ 71.63 billion compared with $ 65.6 billion a year earlier (+ 9% year-on-year), and analysts had expected the amount of $ 68.34 billion Revenue from the sale of Mac increased by 25% year-on-year, to $ 10.85 billion Sales of the iPad brought $ 7.25 billion, which is 14% less than in the same period last year - experts predicted $ 8.18 billion.

Apple again did not provide an official forecast for the current quarter. "This quarter, we expect strong revenue growth compared to last year," said CEO Tim Cook. "And we expect supply curbs to be less than in the fourth quarter of last year." On January 28, as of 18:05 Moscow time, the securities grew by 3.54%, to $ 164.86.

Analysts are massively revising forecasts for Apple shares. The highest is $220 per share

After record results, experts began to massively raise target prices for Apple shares. Katie Huberty of Morgan Stanley called the quarter "extremely" positive and raised the target of securities from $ 200 to $ 210. "We believe the fourth quarter results will help refocus investors' attention on the value of Apple's ecosystem," Huberty said in a commentary.

Now the company has about 14 thousand applications in the App Store that support augmented reality. Tim Cook noted that this number will only grow with further investment. "We see a lot of potential in this space and are investing accordingly," Cook said in response to a question about plans for the metaverse. In the fourth quarter, Apple had 785 million paid subscribers, which is more than 620 million a year ago and 745 million last quarter.

Taiwanese analyst Ming-Chi Kuo, who is known for correct predictions regarding Apple, reported that Apple plans to introduce an AR headset in the coming years. By mid-2022, it is expected that the company from Cupertino will release a helmet-headset of mixed reality, but Apple has not yet confirmed these plans.

Deutsche Bank analyst Sidney Ho raised the target price of Apple shares from $ 200 to $ 220 and kept the "buy" recommendation. The expert is impressed by Apple's strong results, especially in relation to the iPhone and Mac, which, according to him, should help mitigate investors' concerns about how buyers are accepting the iPhone 13 family and the slowing PC market.

"Apple also saw an improvement in gross product margins of approximately 330 basis points year-on-year despite the inflation environment, and this gives us confidence that consumers continue to move to more expensive (and more marginal) Apple products," Deutsche Bank said in a research note. Apple's gross margin in the fourth quarter was 43.8%.

Wedbush expert Dan Ives noted that when Apple launches its own augmented reality glasses, it will put the company "at the center of the battle for the metaverse." Apple's investment in such equipment gives it a strong advantage over competitors. Such investments can increase the value of shares by $ 20 per share.

Citi analyst Jim Suwa kept the "buy" recommendation for Apple with a target price of $200. Investors are too negative about Apple stock and see the company as a beneficiary of COVID-19, the demand for which products will fall as society returns to normal life, Suva said in a review. However, demand for Apple products and services "significantly exceeds supply," and when the supply chain normalizes, Apple's sales and profits will only grow, the analyst says.

Suva adjusted his financial model by lowering the multiplier p/e (price-to-earnings ratio) from 32x to 30x, given that the market is now opting for lower multipliers because of the fed's imminent rate hike. However, the EA keeps the target price of $200.

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